The Centre on Monday announced the merger of three banks -- Dena Bank, Vijaya Bank and Bank of Baroda – into a single bank.The merger will make it the third largest bank of the country, said financial services secretary Rajiv Kumar.
Boards of the three banks will examine amalgamation proposal, Kumar told a news conference in New Delhi.He said the banking sector needs reforms and the government is taking care of banks' capital needs.
Gains of Four R’s – Recognition of NPAs, Resolution under IBC, Reforms under #EASE & Recapitalisation visible. 6th largest economy of the world growing at 8.2% (Q1 FY-19) duly supported by 13.5% credit growth YoY (Aug’18) @PMOIndia @FinMinIndia @PIB_India pic.twitter.com/PYp5xfkEht— Rajeev kumar (@rajeevkumr) September 17, 2018
Rationalisation of overseas operation in banking sector is in full swing, he said, adding the government is keen to take steps so that history isn't repeated as far as NPAs are concerned. Union finance minister Arun Jaitley said the government had announced in the budget that consolidation of the banks was also in the government’s agenda and the first step has been announced.
“No employee will face any service conditions which are adverse in nature. The best of the service conditions will apply to all of them,” Jaitley assured.
(With PTI inputs)